How To Read Your Credit Report

The Fair and Accurate Credit Transactions Act, signed into law on Dec. 4, 2003, gives every American the right to a free credit report every year from each of the three major credit bureaus -- Equifax, Experian and TransUnion.

What the law doesn't do is give every American the ability to read their credit report. Not one word in the law says the credit bureaus have to write it in plain, easy-to-understand language. Go to http://www.ftc.gov and click on consumers then credit and read it for yourself. Hopefully you'll stay awake .

While all credit reports follow a basic format, some vary so what you are about to read doesn't apply across the board. If you didn't get it directly from one of the bureaus mentioned above, your best bet for a translation is the source providing your copy.

Here is the four part skeleton most bureaus use. Part one is your identifying information. This would be information like your name, social security number, previous addresses, current address, date of birth, driver's license number, telephone number, spouse's name and your employer and length of employment. As with all sections, pay close attention because chances are pretty darned good, some of it is wrong.

It is wrong because this information comes to the bureau from a myriad of sources and the bureau doesn't take the time to update or correct it. That leaves you as your own correcting agent.

Part two is your credit history. This is usually the longest part of your report because you probably have had department store accounts, multiple credit cards, multiple bank and other financial institution loans, mortgages, car loans, lines of credit, home equity loans and other transactions involving credit.

Sometimes you will see the bureau calls these accounts trade lines. No big deal because they are still your accounts.

These accounts usually start with when you opened the account then tell the type or kind of credit (installment, car loan, personal loan, etc.) and whether it is in your name or someone else is on the account with you. The total amount of the loan with your high credit limit or if it is a credit card, your highest balance follows. The next thing it shows is how much you still owe and if the payments are fixed or minimum monthly amounts. Your status, open/inactive/closed/paid, follow your payments then comes the item everybody wants to know, how well you've paid on the account.

This is where the bureaus list if you are late, and if late, how late and how often you've been late. If you are not late, it will show you pay on time.

Part three is called Public Inquiries or Public Records. This is where tax liens, judgments, foreclosures and bankruptcies are listed. You want this part to be blank and I do mean blank. If you see anything here, attempt to correct immediately if not sooner.

Part four is the Inquiries section. It is divided into two parts. Part one are the inquiries you initiate by filling out a credit application. This section is generally referred to as the hard inquiry section because you are the initiator of the inquiries.

The second part is called the soft inquiry section. What you'll find here are the names of companies who have sent you offers of credit or current creditors who are monitoring your account.

Sometimes there is a fifth section called Remarks. Read it because you never know who reported what about you.

Each credit report bureau places an explanation of terms usually on the backside of the report pages. In it, they explain what the numbers and letters you see next to your accounts mean. So, if you see something like I9, don't fret as it should be defined in the explanation of terms.

Of course, I9 could be negative, so you may have to fret. Either way, you are now almost totally armed to deal with that free credit report the law said the bureaus had to give you.

Good luck and may all your credit be A+.

Tom Koziol wrote "Credit Card Capers: Exposing All Their Dirty Tricks" as an expose on how the banks are robbing consumers via their credit cards. Get the dirty lowdown at http://www.creditcardcapers.com

---

Bailiffs & Council Tax - Knowing What To Do

This article is about bailiffs who may call trying to collect Council Tax or Community Charge (Poll Tax) arrears. If a bailiff has contacted you to collect... Read More

My Credit Card Application Was Rejected! Now What?!?

No doubt, you've probably gotten literally hundreds of credit card applications in the mail and online, and each and every one of them has said that you've... Read More

Do You Know Whats On Your Credit Report ?

It is important to know your credit rating for a number of reasons. Believe it or not there may be errors in your credit report, and it... Read More

What Happens When Your Credit Is Damaged? Do You Have Recourse?

The good thing about bad credit is that you can fix it. If you start now, over time, your bad credit can turn into good credit, and... Read More

Making Sense of Credit Card Fees

In addition to the APR (annual percentage rate) and the finance charges, most credit cards have a number of 'fees' associated with their use. Some fees are... Read More

Credit Card Benefits and Drawbacks

Credit cards have both benefits and drawbacks. It is wise to consider both before applying for a credit card. While they can be very useful, credit cards... Read More

4 Steps to Creating Good Credit

As a consumer you've learned the importance of establishing a good credit rating with your lenders. Whether you are shopping for a new home or auto, or... Read More

Preventing Credit Card Mess

Credit card debts problem is extremely common today. It is usually the first sign of longer term financial troubles. How to manage your credit cards so that... Read More

Credit Card Shocker

Have you ever looked at your credit card statement? I'm not talking about just making sure that all the transactions are correct. I'm talking about looking at... Read More

Credit Card Rates - Negotiating Rates with Your Credit Card Company

Ok, let's face it, everybody hates high credit card rates, and they drain hard earned money out of your wallet. As a valued consumer, it is apparent... Read More

How to Dispute Credit Report Errors

Your credit report--a type of consumer report--contains information about where you work and live and how you pay your bills. It also may show whether you've been... Read More

Finding and Applying for the Right Credit Card Offer Online

Anywhere you go online nowadays, you will see a multitude of ads for credit cards. Some offer low interest rate for an introductory period, or bonus frequent... Read More

What is a Bad Credit History?

A bad credit history can sometimes seem like a curse... whenever you apply for financing or for a loan, it always seems to pop up and cause... Read More

Credit Counseling -- Why It Doesnt Work For Most Debtors

"Cut Your Payments in Half!" the headline screams. "Consolidate Your Bills into One Low Monthly Payment!"When you see ads like this, they are often from Credit Counseling... Read More

Repair Your Credit - The Right Way!

How to Repair a Bad Credit Rating?The Right Way!If you have a bad credit rating, then you might find that your ability to get financing, loans, and... Read More

Winning The Credit Game!

Everywhere we go, the word credit can be found, shining huge dollar signs in front of our very eyes. Everyday we receive solicitation and promotions offering us... Read More

Identity Theft ? Monitor Your Credit Report

The recent security breach at credit card processor CardSystems Solutions has many consumers worried. Thanks to a well-placed computer virus, nearly forty million credit card numbers were... Read More

Credit Cards Can Help You Get Out Of Debt

Your credit rating / credit score is based upon how you have dealt with credit previously. If you have always paid the full amount owing and never... Read More

How You Can Avoid Becoming A Victim Of Identity Theft

To reduce or minimize the risk of becoming a victim of identity theft or fraud, there are some basic steps you can take.The most important one is... Read More

Credit Card Disclosure Table ? Do You Understand It All?

In addition to the APR (annual percentage rate) and the finance charges, most credit cards have a number of 'fees' associated with their use. Some fees are... Read More

The Hazards Of Your First Credit Card

You probably don't need me to tell you credit cards are easy to get a hold of; at least, that is so in the US and UK.... Read More

Are 0% Credit Cards Reaching Their End?

Are Credit Card companies starting to feel the pinch? We all know that the Credit Card companies make their money by charging us interest on the money... Read More

Five Credit Card Billing Problems and How to Fix Them

It goes without saying that your first and best defense against paying fraudulent or unfair charges on your credit card is knowing what your bill says! When... Read More

Dont Fall for Credit Repair Scams

We've all seen the ads on television or in magazines, shouting, "Erase bad debt!" or "Remove negative entries from your credit report!" If you're a person suffering... Read More

Building A Credit Report Lenders Will Love You For

Will lenders really love you for having a good credit report score? Love is not the right word of course; lenders are after your money, and never... Read More

Improving Your Credit Report

Even if you think you have a wonderful credit report, be wary of the error factor. Just as you receive mail with your name and address misspelled,... Read More